[]
Morgan Stanley downgraded the rating to Mexico within range of UW (underweight) in recommendation to invest, after the risks that the judicial reform.
The financial firm said that capital investments in the country must be limited due to adjustments in the judicial system.
“We believe that replacing the judicial system should increase Mexico’s risk premiums and limit capital investments. That is a problem, since the nearshoring is reaching key bottlenecks,” Morgan Stanley noted.
The American financial institution recommended having a lower exposure to Mexican stocks, following the proposal to remove all the judges in the country proposed by the president Andres Manuel Lopez Obrador.
You might be interested in: Digital platform workers put labor freedom before benefits: Alianza In México
“We lowered Mexico’s rating to underweight Following the proposal for judicial reform that the Executive sent to the Congress, which we believe presents risks to the country’s investment narrative.”
On this scale, the shares of a company or market are expected to perform worse than estimated.
LEO
Related
2024-08-25 08:48:32